Which of the following is the correct formula for measuring a cost variance?
A) Cost Variance = (Actual Cost + Standard Cost) / Actual Quantity
B) Cost Variance = (Actual Cost - Standard Cost) × Actual Quantity
C) Cost Variance = (Actual Cost + Standard Cost) + Actual Quantity
D) Cost Variance = (Actual Cost - Standard Cost) - Actual Quantity

Question

Quizplus · Accepted Answer

The correct formula for measuring a cost variance is the difference between the actual cost and the standard cost multiplied by the actual quantity. This is represented by option B.

Which of the Following Is the Correct Formula for Measuring